Key Insights

• RedFlow will host its Annual General Meeting on 23rd of November

• Salary of AU$430.0k is part of CEO Tim Harris's total remuneration

• The total compensation is 74% higher than the average for the industry

• RedFlow's three-year loss to shareholders was 29% while its EPS grew by 4.0% over the past three years

Shareholders of RedFlow Limited (ASX:RFX) will have been dismayed by the negative share price return over the last three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. The AGM coming up on the 23rd of November could be an opportunity for shareholders to bring these concerns to the board's attention. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

Check out our latest analysis for RedFlow

Comparing RedFlow Limited's CEO Compensation With The Industry

According to our data, RedFlow Limited has a market capitalization of AU$47m, and paid its CEO total annual compensation worth AU$672k over the year to June 2023. Notably, that's an increase of 22% over the year before. Notably, the salary which is AU$430.0k, represents most of the total compensation being paid.

For comparison, other companies in the Australia Electrical industry with market capitalizations below AU$307m, reported a median total CEO compensation of AU$385k. This suggests that Tim Harris is paid more than the median for the industry. Moreover, Tim Harris also holds AU$277k worth of RedFlow stock directly under their own name.

On an industry level, roughly 72% of total compensation represents salary and 28% is other remuneration. In RedFlow's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

RedFlow Limited's Growth

RedFlow Limited's earnings per share (EPS) grew 4.0% per year over the last three years. It saw its revenue drop 24% over the last year.

We would prefer it if there was revenue growth, but the modest improvement in EPS is good. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.